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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: raybiese who wrote (157165)	9/18/2011 4:08:23 PM
From: Ed Ajootian	2 Recommendations Respond to of 206135

ray, the reason I believe that WTI prices should be mostly independent of crude prices of the rest of the world is that that region has been able to put itself into a position where it can balance the supply/demand for its oil without needing very much oil from outside the region. When you are in that position its almost like the commodity you are producing/consuming is an entirely different commodity than the one the rest of the world is producing/consuming. WRT gasoline, I believe something like 60% of the gasoline produced in this country comes from refineries that have little or no access to WTI oil and thus have to essentially pay Brent or equivalent prices for their crude. In light of that I would expect gasoline, contrary to WTI, to be impacted quite a bit by what happens to worldwide crude prices. As an aside, I find it interesting that gasoline seems to be selling at similar prices throughout the country these days, meaning that the refineries able to access WTI oil vs. Brent oil are making out like bandits. But in spite of this we aren't seeing any complaints about price-gouging. IMO if anything is price-gouging this is it.